.png?width=400&name=SBSIWebinarsBundles_WebMenu%20(1).png)
Frequently Asked Questions About Privacy & Consumer Data Protection
Who does GLBA apply to?
The Gramm–Leach–Bliley Act (GLBA) applies to financial institutions and any business significantly engaged in providing financial products or services. This includes banks, credit unions, mortgage lenders, insurance companies, investment firms, and even non-traditional entities like auto dealers offering financing. Under GLBA, these organizations must protect nonpublic personal information (NPI) and disclose how they share consumer data. Compliance involves implementing administrative, technical, and physical safeguards to secure customer information.
Does GDPR apply to US companies?
Yes, the General Data Protection Regulation (GDPR) can apply to US-based companies if they process or store personal data of individuals located in the European Union (EU). This includes businesses offering goods or services to EU residents or monitoring their behavior online. GDPR requires strict data protection measures, lawful processing, and transparency in handling personal data. Non-compliance can result in significant fines, even for companies outside the EU. US organizations often adopt GDPR standards to align with global privacy expectations.
Who does the FTC Safeguards Rule apply to?
The FTC Safeguards Rule, part of GLBA, applies to financial institutions under FTC jurisdiction. This includes non-bank entities such as mortgage brokers, payday lenders, tax preparation firms, and even some retailers offering credit. The rule mandates a comprehensive information security program to protect customer data. Key requirements include risk assessments, encryption, multi-factor authentication, and regular testing of security systems. Recent updates emphasize accountability by requiring a qualified individual to oversee the program.
Who is responsible for ensuring GDPR compliance?
Under the General Data Protection Regulation (GDPR), the data controller is primarily responsible for compliance. A data controller determines the purpose and means of processing personal data. Data processors, who handle data on behalf of controllers, also have obligations under GDPR. Organizations must appoint a Data Protection Officer (DPO) if they process large volumes of sensitive data or monitor individuals systematically. The DPO oversees compliance, advises on data protection impact assessments, and acts as a liaison with supervisory authorities.
What are the penalties for non-compliance with the GDPR?
GDPR enforcement is strict. Non-compliance can lead to administrative fines, legal actions, and reputational damage. Supervisory authorities can issue warnings, reprimands, or impose temporary bans on data processing. Organizations may also face lawsuits from individuals whose data rights were violated. Penalties depend on the severity and nature of the breach, including whether it was intentional or negligent.
How high are the fines for GDPR non-compliance?
GDPR fines are tiered:
- Lower tier: Up to €10 million or 2% of global annual turnover, whichever is higher. This applies to violations like failing to maintain records or notify breaches.
- Upper tier: Up to €20 million or 4% of global annual turnover, whichever is higher. This applies to severe breaches, such as violating core principles like lawful processing or data subject rights.